| Three important components of the forest products industry, logging, trucking, and sawmilling were the subject of an integrated step-wise study. The purpose was to conduct financial analysis of each sector and of product values. Equations for modeling logging and sawmill production were derived from time study data. Shift-level data formed the basis of a detailed, accounting-based cost analysis.; Equations for predicting lumber grade yield from logs were developed for thirteen species of commercial importance in southern New England. A statistical procedure designed for models with limited dependent variables was used (TOBIT) in addition to OLS methods. Because lumber grade yield data are truncated at zero the application of OLS procedures leads to estimates of coefficients that are biased, and prediction of negative values.; Deterministic simulation of the conversion process from standing tree to green chain revealed that factors such as stand accessibility, species composition, and tree or log size have large effects on production, costs, and profitability. Labor efficiency was also found to be an important variable. Examination of the results of the study suggests that this modeling technique is more equitable than current methods for setting contract pay rates for logging and trucking, and is an accurate means for timber buyers to determine bids. |
